The prime classic car auctions season has begun and for anyone watching so of the recent bid prices seem astonishing, but the reality is that the run of the mill vintage car prices are remaining a bit static while the top 1% of the real collectibles are rising at a good rate making the spread even wider. For those who know what to do there are some deals out there, but there is still quite a bit of risk for people who do not know how to work a classic car auction. We have discussed previously some of the car auction basics to help you not get caught on the wrong end of the hammer.
It really comes down to balancing your risk against your potential savings. But if you can avoid common mistakes, you can save some money when buying a used classic car.
In short here are some tips to the car auction scene whether you are looking for a vintage car or even your next daily driver:
Choose The Right Classic Car Auctions
While online auctions, such as those on eBay Motors, sometimes turn up bargains, the real deals are at local brick-and-mortar auctions.
You can usually attend public auctions for free, but if you plan to bid, you will have to pay a fee. The larger national classic car auctions also require a buyer’s commission which can range from 3% to 10% of the purchase price. Most auctions accept cash or cashier’s checks and require an immediate deposit and full payment within 24 hours.
Watch Before You Bid
After you find a good auction, go several times just to watch the action before trying to buy a car. Get comfortable with how quickly the vehicles move across the auction block, the platform where they are sold. Larger auctions may have multiple lanes of vehicles in constant motion. Take note of how other buyers bid and listen to the cadence of the auctioneer’s delivery.
Assess The Risk
Check the auction’s website to find out what, if any, guarantee is included with the car. Many use a “stoplight” system, both online and at the auction itself:
- Green light: Vehicle has no known defects, and arbitration is available to deal with undiscovered mechanical issues.
- Yellow light: Vehicle has known issues not subject to arbitration.
- Red light: Vehicle sold as is. “If the engine blows up, you’re out of luck”.
Inspect And Verify
You can usually inspect the cars before the bidding, but most auctions will not allow a test drive. All you can do is sit in the car, start it, and possibly put it in gear. Online, most auctions provide a “condition grade” — a 1 to 5 scale with 5 being new and 3 being normal wear and tear — or a detailed list of imperfections and mechanical malfunctions. Even so, make sure you get a vehicle inspection report for any car you are strongly interested in. However, even these reports can miss vital information such as flood damage. Also see if the seller has history reports and backup documents to support the claims of condition.
Bring A Friend
Preferably, bring a car-savvy friend or even a mechanic with you. But whoever is your wingman, tell them what you want to buy and how much you are willing to spend. Their job is to keep you from getting overly excited.
Cast A Wide Net
Instead of falling in love with one car be open-minded. Review the “run list” online the day before to see what cars are for sale so you can target several that suit your needs.
Set A Bidding Range
Once you have identified several potential candidates, check the value of these cars on pricing guides such as Edmunds, Hagerty, or Kelley Blue Book. Cement this price in your head and do your best not go above it.
Just as important as what you should do are the dangerous traps to avoid:
Overbidding at Classic Car Auctions
In the heat of the moment, you could fall victim to “the mist” syndrome where the excitement clouds your judgment. Maybe the auctioneer is staring at you, waiting for you to bump up your offer. If you are at your limit, turn your back to show you are not interested.
Poor Signaling
With cars in multiple lanes and the machine-gun banter of the auctioneer’s voice, it is easy to miss the cream puff you were eyeing. Catch the auctioneer’s eye early in the process so he or she knows you are going to be a bidder. Remember that you will have only seconds to decide whether to buy or let it go.
Bidding Against a Shill
Some sellers will sometimes bid on their own cars to drive up the price. If a bidder is known by the auction team or seems like an insider, be extra careful to stick to your bidding limit.
Buying A Lemon
Assuming the vehicle history report is clean, it is still up to you to do what you can to look for mechanical defects or body damage. Go online to read automotive forums for mechanical problems with the cars you are targeting. Create a checklist and thoroughly inspect the car. Being educated on the cars you are targeting will save you easily avoidable mistakes.
Added Costs Buying at An Auction
Once you have bought your new Classic car you not done spending money before you get your car home. You will also need to insure and transport your car from the auction to wherever you plan on keep the car so this will also add to your purchase price.
Finally
Having attended quite a few classic car auctions over the years there are many viables to take into account, and when your target vintage car comes onto the block you have mere seconds to react and stay focused on where you stand in the bidding process so the more homework and preparation you do prior to that day the better off you will be. Today these classic car auctions are really an adult amusement park for the car hobbyist with so much going on so I strongly recommend taking in a few classic car auctions before dipping your toes into the buyers’ pool.
